WHAT IS COMMERCE

According to Dictionary.com Commerce is a division of trade or production

which deals with the exchange of goods and services from producer to final consumer

It comprises the trading of something of economic value such as goods, services, information, or money between two or more entities.

WHAT IS E-COMMERCE Commonly known as Electronic Marketing. “It consist of buying and selling goods and

services over an electronic systems Such as the internet and other computer networks.”

“E-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.

TRADITIONAL BUSINESS

DIRECT SELLING

MANF. UNIT 20%

DISTRIBUTOR 10%

WHOLESALER 10%

RETAILER 10%

CUSTOMER 100%

ADVERTISEMENT 50%

CUSTOMER

COMPANY

Why Use

E-Commerce

…….?

LOW ENTRY COST REDUCES TRANSACTION COSTSACCESS TO THE GLOBAL MARKET SECURE MARKET SHARE

BriefHistory

OfE-Commerce

1970s: Electronic Funds Transfer (EFT)Used by the banking industry to exchange

account information over secured networks Late 1970s and early 1980s: Electronic

Data Interchange (EDI) for e-commerce within companiesUsed by businesses to transmit data from one

business to another 1990s: the World Wide Web on the

Internet provides easy-to-use technology for information publishing and disseminationCheaper to do business (economies of scale)Enable diverse business activities (economies

of scope

THE PROCESSOFE-COMMERCE

A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet.

The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart.

When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery

When the merchant's Web server receives this information, it computes the total cost of the order--including tax, shipping, and handling charges--and then displays the total to the customer.

The customer can now provide payment information, such as a credit card number, and then submit the order.

When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase.

The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment.

TYPES

OF

E-COMMERCE

BUSINESS-TO-BUSINESS (B2B) B2B stands for Business to Business. It consists of

largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. 

E.g.:-Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products.

BUSINESS-TO-CONSUMER (B2C): It is the model taking businesses and

consumers interaction. The basic concept of this model is to sell the product online to the consumers.

B2c is the direct trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website.

BUSINESS-TO-EMPLOYEE (B2E)

Business-to-employee (B2E) electronic commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.

CONSUMER-TO-CONSUMER (C2C) There are many sites offering free classifieds,

auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

PROS AND CONSOF

E-COMMERCE

PROS

No checkout queues

Reduce prices

You can shop anywhere in the world

Easy access 24 hours a day

Wide selection to cater for all consumers

CONS

Unable to examine products personally

Not everyone is connected to the Internet

There is the possibility of credit card number theft

On average only 1/9th of stock is available on the net

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